How does Coinbase work?
It is easy to get started with a Coinbase account.
First, you download the app and will be prompted to make an account. Enter your first name, last name, email account, and set your password. The app will then send an email to verify your account, then you can set up a phone number for 2-factor authentication.
Once you have basic account details set up, you will be promoted to verify your identity. Coinbase requires you to upload a government-issued photo ID to show you are over 18 and to confirm your identity.
After that, you will fill out a short questionnaire with questions about your income, employment, and reasons for using Coinbase. The app uses answers to these questions to generate recommended investments that fit your preferences.
After you handle all verification, you can then link your payment method. For UK customers, you can link a standard UK bank account, SEPA transfer, 3D secure card, or a PayPal account.
Additionally, UK customers can store both GBP and EUR currency denominations in their Coinbase wallet, but the two folders have to be funded by different accounts.
It’s important to know that Coinbase does not accept physical checkers or bill pay for payment methods.
Once you have your payment method set up and authorized, you can start buying and selling cryptos. To make trades, select the “Buy/Sell” button in the top right-hand corner and you can browse various crypto denominations.
Coinbase currently supports most major forms of cryptocurrency, including Bitcoin, Ethereum, Litecoin, Atom Coin, and more.
When you find crypto that you like, you can select the Buy field under the asset listing and enter the amount of denomination that you want to purchase or select how much of your currency that you want to spend.
Select your payment method, click the Preview Buy button, then you can review and confirm your purchase. If everything looks in order, click on Buy and you are done.
You can also select whether you want the transaction to be a one-time purchase or a recurring purchase.
Coinbase partners with various payment services depending on your geographic location. In most cases, your funds will be immediately available after you sell, but you may have to wait a day or two depending on where you are, the time that you make the sale/purchase, and the amount you bought or sold.
Deposits from your bank transfer to your GBP wallet normally take about a single day to happen while EUR transfers from a UK bank account take 1-2 days.
What are Coinbase Fees?
Coinbase wants to make fees as unobtrusive as possible so typically, fees for things like miners fees and transaction fees will be determined based on how much the company plans to pay for each transaction.
Fees will always be different depending on specific factors like your location, payment method, and type of crypto purchase, but they will always be disclosed to you before completing a transaction.
In general, Coinbase charges one-half of a percent (0.5%) in spread fees for crypto purchase and sales. Actual spread rates may be higher or lower depending on specific market conditions. If you bought £100 worth of Ethereum, then you would have to pay a flat fee of £2.99 on the transaction or a variable fee. Variable fees can change depending on the day and specific market conditions. As of the time of writing, variable rates for UK customers are 1.49% for standard buying/selling and 3.99% for instant debit card buys.
Is Coinbase Legit? Is My Money Safe?
Yes, Coinbase is legitimate and they claim that your money will be safe with them.
Coinbase is authorized and regulated by the Financial Conduct Authority (FCA) and follows all relevant laws and regulations when trading cryptocurrencies.
The majority of Coinbase’s crypto reserves are held in “cold” storage with the rest in “hot” servers meaning that they are there to serve liquidity necessities for customers.